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How much must be invested today at 10 %, compounded continuously, to be worth $165,000 in 5 years? Pick the closest answer. [Use e = 2.71]

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How much must be invested today at 10 %, compounded continuously, to be worth $165,000 in 5 years? Pick the closest answer. [Use e = 2.71]
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Solution 1

To solve this problem, we will use the formula for continuous compounding, which is:

A = P * e^(rt)

Where: A = the amount of money accumulated after n years, including interest. P = the principal amount (the initial amount of money) r = annual interest rate (decimal) t = time the money is invested Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.

Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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